One of the major problems is the availability of power. Right now, it has no surplus power that it can sell to new customers. All the power it produces is contracted to be sold to Reliance Infrastructure, the Brihanmumbai Electric Supply and Transport (BEST), and its own bulk consumers.
"Where will you get the power? It is bidding for distribution licences in Maharastra for which it needs additional power,'' said a Delhi-based power expert, who has been tracking the tussle between Tata Power and Reliance Infrastructure.
The company is increasing generation capacity of its Trombay (a northeastern suburb in Mumbai), plant by 250 mw, which will be available from October this year. This power can be sold to its new customers. There's no power purchase agreement for the power it sells to Reliance (500 mW). Experts feel it can curtail the supply if it can sell the same power itself for a better price.
Tata Power could target creamy customers like malls and multiplex, some of whom pay Rs 10 for a unit of power. "It could sell them power at Rs 7 a unit, which will make them happy and help it earn more money,'' said Harry Dhaul, director general, Independent Power Producers Association.
Interestingly, it sells power roughly at Rs 3 a unit to Reliance Infrastructure, said an equity analyst tracking Tata Power. Another expert said it sells power to bulk consumers at Rs 4 a unit. Tata Power officials were not available for comments.
Experts say that Tata Power has a good network